After losing $985 million in fiscal 2012 on sales of $13.0 billion,�J.C. Penney (NYSE: JCP ) assured analysts in February that liquidity was not an issue, pointing out that it had access to a $1.85 billion credit facility that can be expanded to $2.25 billion. Add in $850 million of adjusted cash on hand at year-end, the company said, and you've got access to short-term capital of approximately $3.1 billion. This week, the company announced that it has drawn $850 million from the line of credit. Let's look at why this is problematic for Penney's, and why investors seeking a value play may want to wait a few quarters before visiting the clearance rack of this retailer.
Background on the line of credit
It's important to note that Penney's credit facility is an asset-based line of credit. Penney borrows against its credit card and trade receivables, as well as its inventory. As a condition to the line, the lenders have a perfected security interest in substantially all of Penney's receivables and inventory -- the assets provide collateral for the loan.
Top 10 Healthcare Technology Companies To Invest In Right Now: Mount Burgess Mining NL (MTB.AX)
Mount Burgess Mining NL engages in the exploration and development of mineral resource properties in Namibia and Botswana. The company explores for copper, zinc, lead, iron ore, rare earths, silver, and diamonds. It owns a 100% interest in the Kihabe-Nxuu base metals project located on the border of Botswana and Namibia; a 100% interest in the North Western Ngamiland diamond project located on the north western border of Botswana; a 85% interest in Tsumkwe rare earth element project located on the north-eastern border of Namibia; a 90% interest in the Tsumkwe diamond project located on the north-eastern border of Namibia; and a 90% interest in Makuri Vlei iron ore prospect situated on the north-eastern border of Namibia. The company is based in East Victoria Park, Australia.
Top 10 Healthcare Technology Companies To Invest In Right Now: Jasper Mining Corp (JSP.V)
Jasper Mining Corporation engages in the exploration for and development of base and precious metals primarily in British Columbia, Canada. It principally explores for copper, lead, zinc, gold, silver, molybdenum, and tungsten ores. The company was incorporated in 1994 and is based in Calgary, Canada.
Hot Computer Hardware Companies For 2014: Charter Communications Inc.(CHTR)
Charter Communications, Inc., through its subsidiaries, provides entertainment, information, and communications solutions to residential and commercial customers in the United States. The company offers cable video programming services, such as basic and digital video, premium channels, OnDemand, pay-per-view, high definition television, digital video recorder, and online video services; Internet services; Charter.net, which provides multiple e-mail addresses, as well as various entertainment, games, news, and sports content; and telephone services. It also provides broadband communications solutions, such as Internet access, data networking, fiber connectivity to cellular towers and office buildings, video entertainment services, and business telephone services under the Charter Business brand name to business and carrier organizations. As of December 31, 2011, the company served approximately 4.1 million video customers; approximately 3.5 million Internet customers; appr oximately 1.7 million telephone customers; and approximately 476,200 commercial primary service units. Charter Communications, Inc. was founded in 1999 and is based in St. Louis, Missouri.
Top 10 Healthcare Technology Companies To Invest In Right Now: Smith Micro Software Inc.(SMSI)
Smith Micro Software, Inc. designs, develops, and markets software products and services primarily for the mobile computing and communications industries worldwide. The company operates in two segments, Wireless, and Productivity and Graphics segments. The Wireless segment develops mobile connectivity, mobile information management, and mobile security solutions, including QuickLink Mobile that provides mobile users to connect a notebook or other wireless device to wireless wide area networks (WWANs) and wireless local area networks (WLANs) or Wi-Fi hotspots; QuickLink Mobility suite, which allows connectivity for the user operating on WWANs, corporate local area networks (LANs), and Wi-Fi networks; and QuickLink Media for managing the media on the mobile devices. It also provides SendStuffNow, which secures cloud-based large file delivery solution; Device Management suite that provides intelligent, automated mobile device provisioning, and configuration; and push-to-talk, visual voicemail, and mobile video solutions. The Productivity and Graphics segment develops various software products for the consumer, prosumer, and professional markets. It provides StuffIt Deluxe, a lossless compression solution for documents and media; CheckIt Diagnostics and CheckIt Netbook suite, a diagnosis and troubleshooting solution for hardware and system problems; Poser, a solution for creating 3D character art and animations; Anime Studio, an animation tool for professional and digital artists; and Manga Studio, a solution for creating manga and comic art. This segment distributes its products through online stores, and third-party wholesalers, retailers, and value-added resellers. The company serves mobile network operators, original equipment manufacturers, device manufacturers, and enterprise businesses, as well as directly to consumers. Smith Micro Software, Inc. was founded in 1982 and is headquartered in Aliso Viejo, California.
Top 10 Healthcare Technology Companies To Invest In Right Now: Zhongpin Inc.(HOGS)
Zhongpin Inc. engages in the processing and distribution of meat and food products primarily in the People?s Republic of China. The company provides pork and pork products, such as chilled pork, frozen pork, hog by-products and variety meats, and prepared meats; and vegetable and fruit products, including asparagus, sweet corn, broccoli, mushrooms, lima beans, strawberries, and capsicums. It sells its products fast food companies, processing factories, school cafeterias, factory canteens, hotels, army bases, and government departments, as well as directly to retail outlets, including supermarkets. The company also exports its products to Europe, Hong Kong, and other countries in Asia. As of December 31, 2010, it operated 157 showcase stores, 1,072 branded stores, and 2,097 supermarket counter locations. The company is headquartered in Changge City, the People?s Republic of China.
Advisors' Opinion:- [By Portfolio Grader]
Zhongpin (NASDAQ:HOGS) improves from a C to a B rating this week. Zhongpin engages in the processing and distribution of meat and food products primarily in the People’s Republic of China.
Top 10 Healthcare Technology Companies To Invest In Right Now: Wisconsin Energy Corporation (WEC)
Wisconsin Energy Corporation engages in the generation, distribution, and sale of electric energy and steam. The company also involves in the purchase, distribution, and sale of natural gas to retail customers, as well as in the transportation of customer-owned natural gas in Wisconsin. It generates electricity from coal, natural gas, wind, and hydro sources. The company offers its services under ?We Energies? name. It serves approximately 1,120,200 electric customers in Wisconsin and the Upper Peninsula of Michigan; approximately 1,064,500 gas customers in Wisconsin; and approximately 460 steam customers in metropolitan Milwaukee, Wisconsin. In addition, the company invests and develops in real estate properties, including business parks and other commercial real estate projects primarily in southeastern Wisconsin. It provides electric utility service to industries, such as mining, paper, foundry, food products, and machinery production, as well as to retail chains. The c ompany was founded in 1981 and is based in Milwaukee, Wisconsin.
Advisors' Opinion:- [By Dividend Stocks Online]
Rating: 97/100. Wisconsin Energy Corp has a dividend yield of 3.2% and a 5 year dividend growth rate of 18%. It has raised its dividend for 8 consecutive years and has a payout ratio of 49%. WEC has a 3 year net income growth rate of 10.8% and the stock is up over 16% in the last year. We would like to see a higher dividend yield on this name but we do like the rate of dividend increases.
Top 10 Healthcare Technology Companies To Invest In Right Now: Tata Communications Limited(TCL)
Tata Communications Limited provides integrated communications services worldwide. Its Global Voice Solutions segment offers international and domestic long distance voice solutions to mobile operators, broadband operators, Web portals, and carrier customers. The solutions include voice termination, international long distance inbound, universal international free phone, managed calling card, audiotext, ISDN, national long distance, and operator-assisted call services. This segment operates a network of approximately 41,000 route kilometers for domestic long distance services in India; and international networks with coverage in approximately 200 countries and territories. The company?s Global Data and Managed Services segment provides enterprise data solutions, such as international private leased circuits (PLC), national PLC, Internet leased line circuits, Internet access, frame relay, asynchronous transfer mode, data center infrastructure and application, virtual priva te network, television uplinking, transponder lease, hosted contacted center, MVOIP and IP voice connect, business messaging and collaboration, business audio and Web conferencing, managed security, telepresence virtual meeting room, media management platform, global video network, and Ethernet services. This segment?s carrier data services comprise global transmission, IP transit, managed node, and content delivery network services; and mobility services consist of wireless global and managed roaming, signaling connection control part, intelligent CAMEL eXchange, short messaging service hub enablement, and signaling monitoring, alarming, and reporting tool. Its Other segment offers net access using Wi-Fi, Internet telephony, broadband, and content services. The company was formerly known as Videsh Sanchar Nigam Limited and changed its name to Tata Communications Limited in 2008. Tata Communications Limited was founded in 1986 and is based in Mumbai, India.
Top 10 Healthcare Technology Companies To Invest In Right Now: Asia Entertainment & Resources Ltd(AERL)
Asia Entertainment & Resources Ltd., through its subsidiaries, engages in the promotion of VIP gaming rooms in casinos in Macau, China. The company promotes four VIP gaming rooms in Macau, including one VIP gaming room located at the MGM Grand Macau Casino and one VIP gaming facility located in the Star World Hotel & Casino, downtown Macau; and one VIP gaming room located in the Galaxy Macau Resort and one located at the Venetian Macao-Resort-Hotel in Cotai. Asia Entertainment & Resources Ltd. is based in Wanchai, Hong Kong.
Top 10 Healthcare Technology Companies To Invest In Right Now: Clean Wind Energy Tower Inc (CWET.PK)
Clean Wind Energy Tower, Inc. (Clean Wind), incorporated on January 22, 1962, focuses on becoming a provider of green energy. As of December 31, 2011, Clean Wind had designed and was preparing to develop, and construct Downdraft Towers that use non-toxic elements to generate electricity and clean water by integrating and synthesizing a range of proven, as well as emerging technologies.
The Downdraft Tower is a hollow cylinder with a water spray system at the top. Pumps deliver water to the top of the Downdraft Tower to spray a fine mist across the entire opening. The water evaporates and cools the hot dry air at the top. The cooled air is denser and heavier than the outside warmer air and falls through the cylinder at speeds up to and in excess of 50 miles per hour (mph), driving the turbines located at the base of the structure. The turbines power generators to produce electricity.
The Company competes with Southern California Edison Company, Pacific Gas & Electric Company, San Diego Gas & Electric Company, Arizona Public Service Company, Florida Power & Light Company, enXco, Inc., PPM Energy, Inc. and UNS.
Top 10 Healthcare Technology Companies To Invest In Right Now: Coca-Cola Bottling Co. Consolidated(COKE)
Coca-Cola Bottling Co. Consolidated, together with its subsidiaries, engages in the production, marketing, and distribution of nonalcoholic beverages, primarily products of The Coca-Cola Company. The company offers sparkling beverages, such as energy drinks; and still beverages, including bottled water, tea, ready-to-drink coffee, enhanced water, juices, and sports drinks. It holds cola beverage agreements and allied beverage agreements, under which it produces, distributes, and markets sparkling beverage products of The Coca-Cola Company in certain regions. The company also distributes and markets still beverages of The Coca-Cola Company, such as POWERade, vitaminwater, and Minute Maid Juices To Go, as well as produces, distributes, and markets Dasani water products under still beverage agreements. In addition, it holds agreements to produce and market Dr Pepper. Further, the company distributes and markets various other products, including Monster energy productsand Sund rop, as well as its own products, such as Country Breeze tea, diet Country Breeze tea, and Tum-E Yummies, a vitamin C enhanced flavored drink, Bean & Body, and Simmer and Bazza energy tea. Additionally, it produces beverages for other Coca-Cola bottlers; and provides restaurants and other immediate consumption outlets with fountain products. The company sells and distributes its products directly to retail stores and other outlets, including food markets, institutional accounts, and vending machine outlets. It operates in North Carolina, South Carolina, south Alabama, South Georgia, middle Tennessee, western Virginia, and West Virginia. The company was founded in 1902 and is based in Charlotte, North Carolina.
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